New Nike Line To Oppose Under Armour's Cross-Trainer Launch
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Nike Launches New
SPARQ Cross-Training Line |
Nike Monday launched its new SPARQ line, which features perhaps its "broadest multimedia campaign ever," and analysts said that the move is "aimed at countering Under Armour's (UA) entry into shoes," according to Brent Hunsberger of the Portland OREGONIAN. The campaign is "focused on a new line of shoes in an otherwise dying cross-training category," as Nike tries to deflect UA's "influence among teen sporting goods consumers." Sporting Goods Intelligence Publisher John Horan: "This was definitely an all-out attempt to stop Under Armour in its tracks. [Nike wants] to make sure they don't get surprised on this category." UA in May will launch its new Prototype cross-trainer, and Nike for the SPARQ launch is "corralling its considerably larger marketing budget." Nike in FY '07 spent $1.9B company-wide on marketing, while UA in the same time period earned just $605M in total net sales. The NDP Group reported that the cross-trainer category makes up just 6% of the nation's $20B athletic footwear market. But SportScanInfo analyst Matt Powell said that Nike "already commands half the cross-trainer market," and the company "essentially created the market in the 1980s" with a memorable campaign featuring Bo Jackson. Horan: "You get over 30, and Nike is still the big thing. But you get to kids that are under 18 ... and it's really that Under Armour logo that's driving a lot of the magic. Which drives Nike crazy." Hunsberger noted UA also recently entered the "small cleated-shoe market, grabbing a surprising one-fifth of the football shoe market and one-tenth of baseball shoes, each in less than a year" (Portland OREGONIAN, 3/11).
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